Medicare Supplemental Insurance is a great way for a senior citizen to hold on to more of his or her money. It’s also relatively inexpensive. Even though the program offered by private insurance companies may be relatively inexpensive, it does not mean that the program is within everyone’s price range. Some people do not make enough on social security to afford the program. They need to find some other way to make sure that their medical needs are met. If they meet the needs testing, the recipient may be eligible for Medicaid as well.
Medicare and Medicaid are needs based programs. Medicare is administered by the Federal government and applies to anyone over the age of 65. Medicaid is a federal program, but each state has its own bureaucracy to handle it. A person must meet certain economic needs to apply for Medicaid. He will automatically get Medicare is he meets the age and residency requirements. Nothing stops a person who meets the requirements from both requirements from getting both of these insurance types. The good news is that the consumer does not need Medicare Supplemental insurance in this case.
If an individual’s income or net worth increases until the point that he no longer needs Medicaid, he may have to make do without a Medicare Supplemental Insurance policy. There are people who get lost in the cracks. The rules say they can afford something, but real life makes things extremely difficult for them. An adult basic program may provide many of the same benefits of a Medigap policy and take on the role of a secondary payer. It’s not always wise for a senior citizen to go without the maximum level of healthcare coverage he can afford.